Sacha,a Dentist,has Significant Investment Assets

question 116

Multiple Choice

Sacha,a dentist,has significant investment assets.She holds corporate bonds,municipal bonds,stocks and mutual funds.Sacha paid $1,500 to an investment adviser to conduct a portfolio review and to prepare a recommendation for rebalancing her portfolio.Which of the following statements is correct regarding the tax treatment of the $1,500 fee?

• A)Sacha can include the full fee as an investment-related expense in her miscellaneous itemized deductions.
• B)Sacha can include the full fee as an investment-related expense in her "for AGI" deductions.
• C)Part of the $1,500 fee will be disallowed due to the holding of the municipal bonds.
• D)The $1,500 fee is not deductible.

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